Research shows that the origin of the word ‘technology’ is Greek, deriving from the term ‘technologia, whose roots are techne- meaning art or skill, and logos- meaning word or study’. Both the root of the word and the end carry differing meanings, but Drengson (1995) combines the two and establishes a definition of technology as:
‘the systematic organisation of techniques and skills, so as to produce some product, by means of reorganising a raw material or some other appropriate medium’.
There are many different forms through which technology can be recognised. This stemmed from original machine technologies in the 80’s, to information technology that was utilised in supporting production between the 80’s and 90’s and finally from the 90’s to the present day, information technology has considerably progressed, both in use and availability (Stanford-Smith and Kidd, 2000). Stanford-Smith and Kidd go on to suggest that developing both machine and information technologies will aid in ascertaining future ‘human technology’.
1.2 Recent Movements
Through research I identified a video interview with Chris Murphy, the president and chief strategy officer at ‘ThoughtWorks’ who suggests that ‘over the past 20 years the world has fundamentally changed’ suggesting that ‘one of the key shifts we are seeing is how technology is being viewed’ (Hot Topics, 2015).
Murphy also identifies how he feels that businesses have ‘tunnel vision to the sheer potential technology created for enterprise’. In my opinion the products they can design and sell with technology making them easier to use, but less emphasis on ‘utilising it to interact with their customers’, a concept, Murphy explains ‘about 5 years ago, businesses started to realise what was on the horizon’ with technology now becoming an ‘integrated’ business asset (Hot Topics, 2015).
(Hot Topic, 2015)
Technology and consumer interaction go hand-in-hand; an example is the Smartphone. The first full touchscreen Smartphone was launched just 9 years ago, and Smartphone penetration is now approaching its peak. 81% of UK adults and 91% of 18-44 years olds have adopted a Smartphone device (Deloitte, 2016).
Technology is a phenomenon that has taken off in recent years and if appropriately adopted and utilised one that will be of sufficient benefit to business. This Wiki will further explore how this concept is new, considered a trend and why it should be augmented into management practice.
2. Technology As A ‘New’ Concept
2.1 Definition and Introduction to New
The term ‘new’ refers to something that is of ‘recent origin, production or purchase’ something that is ‘of a kind now existing or appearing for the first time’ (Dictionary.com, 2017). When analysing technology in relation to this definition, it would be wrong to assume that technology as a concept is of recent origin or production as the history of technology goes back to the beginning of human existence. Yet, in reference to technology and its use in business, we could argue the concept as new.
2.1.1 Technology Use
There are numerous different technologies in which businesses utilise to include, computers, software, networking, telephones, accounting systems, inventory control and customer relationship management (MacKechnie, 2017 cited in Small Business, 2017).
This section of the wiki will identify three key concepts that have aided in revolutionising business operations in the 21st Century.
2.2 Inventory Control Systems
‘An inventory control system is a system that encompasses all aspects of managing a company’s inventories; purchasing, shipping, receiving, tracking, warehousing and storage, turnover and reordering’ further to this, ‘new technologies have greatly improved the tools used to manage inventories’ (Inc, 2017).
A report by Oracle (2016) identifies many challenges have arisen surrounding inventory control, but suggests that ‘businesses must look to embrace digital technology’ as a new tool in overcoming them.
Companies began integrating modern inventory management systems into their businesses during the 1990’s, as a result of advances in computer and software technology. But, the ever growing and advancing technological changes enabled the creation of the new RFID (radio frequency identification) microchip technology, which transmits and carries product information among other new characteristics (Crosby, 2007 cited in How Stuff Works, 2017).
This new advancement allows for the effective tracking of sales and inventory, informing the retailer of what consumers are purchasing, enabling them to identify the products that aren’t selling as well, and take appropriate action. The above enables managers a real-time focus of what is happening with their inventories. Oracle (2016) supports this statement suggesting ‘it is vital that businesses have access to contextualised, real-time information to enable them to track, trace and route goods in the most effective way at any given time’.
VMI (vendor-managed inventory) is another automated control, a new venture that allows the vendor additional control over their stock, requiring close working relations with retailers. Defined as when ‘the vendor is responsible for keeping its products stocked on a store’s shelf’ (Crosby, 2007 cited in How Stuff Works, 2017).
Marder’s (2015) blog of inventory management statistics, identifies ‘a shocking amount of capital is tied up in inventory’ and that ‘the number of companies without a robust inventory management system is shocking, 46% of SMBs either don’t track inventory or use a manual method’.
New RFID and VMI systems aid in avoiding loss of profitability, as if implemented and utilised correctly provide managers with a clear picture of their stock, what is selling and what isn’t and enables appropriate action. New and innovative systems facilitating competitiveness and profitability.
2.3 New Cloud Computing
‘Cloud computing enables on-demand access to computing and data storage resources that can be configured to meet unique constraints of the clients with minimal management overheads’ (Aguair et al, 2014) and is defined as a concept of ‘gradual evolution that started in the 1950’s with mainframe computing’ (Neto, 2014 cited in IBM, 2014). At the very beginning of its existence, cloud computing facilitated ‘multiple users were capable of accessing a central computer through dumb terminals, whose only function was to provide access to the mainframe’ (Neto, 2014 cited in IBM, 2014).
Tech Leaders from Insight Enterprises first annual index highlight that ‘the most pressing areas in need of improvement include network infrastructure/moving into the cloud’ with the highest percentage at 61% and 89% ‘cite cloud computing as the innovation that has had a significant impact on technology today (Insight Enterprises, 2016 cited in GlobeNewswire, 2016).
New developments in technology have facilitated the growth of 3 alternate cloud computing platforms to include private, public and hybrid clouds. Allowing ‘anytime, anywhere access to IT resources delivered dynamically as a service’ (Neto, 2014 cited in IBM, 2014).
Buyya (et al, 2009) supports this highlighting cloud computing as ‘the latest paradigm to emerge’ and one that ‘promises reliable services delivered through next-generation data centres that are built on virtualised computer and storage technologies’.
Cloud migration is a new concept that more and more businesses are accepting and exercising. A report identifies that small companies were quick to shift over to using the cloud but larger companies not so much. But with new advances the cloud is proven much more efficient than traditional infrastructure. In light of this, predictions show that the 77% of companies that remained traditional as of 2015 will drop to around 48% by 2018 (Dholakiya, 2017 cited in Cloud Tech News, 2017).
Dholakiya (2017 cited in Cloud Tech News, 2017) anticipates that ‘Cloud security will take precedence’. And arguably so! With the consistent increases in the number of organisations adopting the cloud, it is essential to keep the data stored in a safe and protected environment, if the new concept is to continue its success. Scott Chasin, IT expert, outlines that cloud computing can offer the latest and most robust security. Additionally, that there is a growing new demand ‘for security to be treated as a fundamentally basic utility where safety can be assumed’ (Dholakiya, 2017 cited in Cloud Tech News, 2017).
2.4 Connecting with Customers and Social Marketing
Predictions were made that during 2016 the number one new trend among businesses comprises ‘top performing companies will focus on connecting with customers’ (Altman, 2015 cited in Forbes, 2015). A robust focus on meeting consumer desires is a resilient and ever-growing concept; technology is an identified means for businesses to fulfil this.
Gartner, Inc. are ‘the world’s leading information technology research and advisory company’ (businesswire, 2016). A report from a Gartner representatives states that 'sustained success in social marketing now requires paid advertising’ (Nayak, 2016 cited in Reuters, 2016).
Gartner’s 2016 digital market channel survey predicted that by 2017 80% of businesses surveyed will have social media advertising programmes in place. 38% of that figure has already got current programs in place the remaining 42% will be starting paid social marketing for the first time (Nayak, 2016 cited in Reuters, 2016). Holmes (2017 cited in Hootsuite blogs, 2017) supports the potential success of the new and existing ventures stating that ‘paid social media actually presents some clear advantages for businesses’. Going on to suggest that, it provides the means for companies to ‘zero-in’ targeting specific demographics and optimise advertising ‘depending on campaign’s goals’ (Holmes, 2017 cited in Hootsuite blogs, 2017).
As depicted below, Kemp (2016, cited in We Are Social, 2016) highlights 59% of the population in the UK are active social media users amounting to 38 million people. Facebook is identified as the top active social platform, with 47% followed by Facebook Messenger (the ‘chat’) at 33%. Globally, Facebook has 1.5 billion active accounts; continuing to be the most dominate social platform.
(Kemp, 2016, cited in We Are Social, 2016)
Social marketing provides a new means for consumer interaction. Social forum use is ever increasing; a justified and valuable means for target marketing.
3. Technology As A Current ‘Trend
3.1 Trend VS. Fad
When identifying something as a ‘trend’ it is important to first distinguish it’s meaning from that of a ‘fad’; two concepts that are often misinterpreted thus wrongly associated.
In brief, Mason (et al, 2015) highlights ‘In short: what we do is a trend, and how we do it can be a fad’.
‘A fad is any form of behaviour that is intensely followed by a population for a short period of time. The behaviour will rise relatively quickly and fall relatively quickly once the perception of novelty is gone’. Contradictorily, ‘trends have identifiable and explainable rises that are driven by audience needs. They help solve a problem for people’ (Dilenschneider, 2016). Similarly, Godin (2015 cited in Dilenschneider, 2016) argues a ‘trend gains power over time, because it’s not merely part of a moment, it’s a tool, a connector that will become more valuable as other people commit to engaging it.’
Thus from my perspective portraying a trend as having a sustained value and importance, and’s existence is of reason, and a fad is the product, as such, of the initial trend. The novelty surrounding a trend is continuous and ever growing.
3.2 Trending Increase in IT Budgets
Rigby and Bilodeau (2015) are the authors of the annual Management Tools and Trends reports by Bain & Company. The 2015 edition, acknowledges business managers are currently contending with a market that is dominated by technological change, suggesting they (being the business managers) ‘plan to spend more on innovation, IT and long-term growth capabilities, and they are embracing digital transformation tools’.
The success and use of information technology (IT) in business is substantial, thus most businesses are increasing their IT budgets. The first annual ‘Insight Enterprises: Intelligent Technology Index’ identifies 6% are planning on investing less than the previous year (2015), additionally, that ‘medium-sized companies will lead the way in tech spending growth: 60 per cent of medium sized businesses plan to increase their budget by an average of 17 per cent over 2016’(Insight Enterprises, 2016 cited in GlobeNewswire, 2016).
(Insight Enterprises, 2016 cited in GlobeNewswire, 2016)
The ‘largest portion of the 2016 IT budget will go toward maintenance of existing equipment and infrastructure (37%), followed by the adoption of new technologies and innovation (33%) (Insight Enterprises, 2016 cited in GlobeNewswire, 2016).
3.3 The Internet and Portable Access
The Internet age began on ‘August 27 1976, scientists from SRI International celebrated the successful competition of tests by sending an electronic message from a computer set up at a picnic table behind the Alpine Inn’ (The Guardian, 2016) the place that the original ‘ARPANET’ was created, pre-internet.
Statistics show that the total population of the UK, as of January 2016, was 64.91billion of which 92% (59.47billion) are active Internet users; up 2% from 2015 (Kemp, 2016 cited in We are Social, 2016).
‘Media time’ is becoming a key part of an individual’s day. On average 3 hours: 47 minutes are spent on the internet daily through a computer or tablet, 1 hour: 33 minutes on a mobile phone and an average of 1 hour: 29 minutes using any device to access social media (Kemp, 2016 cited in We are Social, 2016).
The Office for National Statistics reported in 2016 that in Great Britain, the Internet was used daily or almost daily by 82% of adults, increased from 78% just a year prior in 2015. Also, 89% of Great British households in 2016 had Internet access up 3% from 2015 and a significant 42% increase from 2006 (ONS, 2016).
A consumer trend to consider is the use of technological devices to access the Internet whilst away from a fixed desktop. As depicted in the graph, during 2016, 70% of adults accessed the Internet ‘on the go’ facilitated using a mobile and/or smartphone device, which was double the 36% that was estimated for 2011 (ONS, 2016).
(ONS, 2016)
As shown below, statistics from the global web index indicates the most popular devices for Internet access; 80% voted the smartphone the most popular tool (Chaffey, 2016 cited in Smart Insights, 2016).
(Chaffey, 2016 cited in Smart Insights, 2016)
Simon Kemp is the author of the annual reports highlighting ‘digital social and mobile usage around the world’. The UK section of ‘Digital in 2016’ outlines the following statistics in support of the previous statement:
27% of those surveyed had purchased online via a mobile device and 73% via a laptop or computer in the last 30 days
92% of the population own a mobile phone, 71% have a smartphone and 75% a laptop or desktop computer.
(We Are Social, 2016).
3.3.1 Business Websites
In consideration of this, would accessibility from such portable devices not be at the forefront of business strategies? An article written by Gazdecki (2014) highlights that SMB’s are not yet fully mobile compatible. Clutch, a marketing software company carried out a survey, which supports Gazdecki’s argument. In 2016 32% of small business websites were not mobile friendly or they were unsure if they were, but the results in the graph below show anticipated changes suggesting 36% will increase website features, 32% mobile friendliness and 39% content development, thus following the trend (Soderlund, 2016 cited in Clutch, 2016).
(Soderlund, 2016 cited in Clutch, 2016)
Websites are an essential tool in the attracting, targeting and retaining of customers. Statistics, correct as of January 2015, show that ’98 per cent of companies now have a website and eight out of ten manage finances online’ (Terrelonge, 2015 cited in Real Business, 2015).
Websites allow for greater access to consumers and to interact with them. ’28 per cent of Brits think local companies that don’t have websites are “out-dated and can’t keep up with the times”’ (Terrelonge, 2015 cited in Real Business, 2015). Portraying strong consumer demand for marketing and communicating with them through utillsing technology and websites. The Internet and alternate information technologies are essential in the 21st century for consumer engagement and in-order to identify a competitive stance in the market.
4. Technology And ‘Management’
4.1 Management and Business
Management is essential in the effective running of any successful organisation; technology based assets are fundamental in today’s society. Consumers and businesses alike are increasing both their use of and reliance on technology.
In support of this Watkins (1998) recognises ‘the role of technology in world businesses both large and small, has increased remarkably. Where the assets of businesses were once represented primarily by bricks and mortar, manufacturing facilities, rolling stock and physical inventories, many of the larger and more profitable commercial organisations today claim technology as their primary asset’.
Throughout this wiki numerous concepts have been identified, in which technological advances and developments have allowed for them to be of substantial aid to businesses. Areas include customer interaction, automation of services, the tracking of products stocked and sold, and the use of virtual computing systems, enabling the ease of data storage and sharing.
But, without effective management these features would not be of any benefit to the company, its employees nor it’s customers.
4.2 Management Definition and Application
Management is defined as ‘a set of activities (including planning and decision making, organising, leading and controlling) directed at an organisation’s resources (human, financial, physical and information) with the aim of achieving organisational goals in an efficient and effective manner’ (Griffin, 2015).
Technology management (TM) however ‘can be conceived as the development and exploitation of technological capabilities that are changing continuously (Best, 2001; NEC, 1987 cited in Cetindamar, 2009).
In relation to technological exploitation and capabilities, it is a concept that has significantly changed business operations. MacKechnie (2017) supports my judgements, identifying ‘few successful companies do not use technology to improve productivity, communicate more efficiently and track customers and goods. In fact most successful organisations rely on technology for almost every aspect of their business.’
Identifying not only the relevance to society today, with the identified number of consumer’s utilising technology, thus a justified market for businesses to target. But also, the increasing use of technology in business is making the market extremely competitive thus increasingly harder for a company to be a success within, without also embracing the technological evolution. Depicting in turn, the overwhelming need for technology in today’s society.
Mason (et al, 2015) suggests ‘customers’ expectations are frequently raised without them even having personally experienced “the best,” but merely through knowing what standard the “best” represents’. Customers are fully aware that the use of technology, the internet and automated services utilised effectively in a business context makes it easier for their wants, needs and demands to be met.
In turn consistently increasing customer expectations surrounding the provision of an appropriate product or service. In-order to effectively meet consumers’ demands it is of overriding importance to effectively manage technology.
5. Is Technology A New, Trend In Management?
5.1 New?
As identified at the beginning of the wiki, technology as a concept is not new. The history of technology stems back before the 80’s and the history of the concepts identified e.g. cloud computing and inventory control root from the 60’s. But, the way that business now utilise these information technologies and how they are augmented into business procedures is new. Modern integration began in the 90’s and since then advances in technology have enabled the systems to develop to what they are today.
5.2 Trend?
Referring back to the definition, the becoming of a valuable trend is facilitated through engagement driven by audiences needs. This wiki has identified key concepts that are driven by consumer demand. This includes the increase of IT budgets in-order to enable the development of business websites and mobile accessibility, in-line with the increased consumer trend of accessing the Internet on-the-go from portable devices. Technology is becoming augmented into the lifestyles of consumers and businesses alike, thus a justified trend.
5.3 Management?
The management of technology is of excelling importance, as identified throughout this wiki, technology is overtaking standard business procedures and is of overwhelming importance to consumers and businesses alike in today’s society. The exploitation of ever-growing technological proficiencies is the overriding focus in achieving and surpassing business objectives. Consequently embracing the technological evolution involves effectively managing the subsequent components in-order to ensure their successful implementation and use.
6. Reference List
Aguiar, E. (2014) ‘An Overview of Issues and Recent Developments in Cloud Computing and Storage Security’, in Aguiar, E., Zhang, Yihua., and Blanton, M. High Performance Cloud Auditing and Applications. New York: Springer New York, pp. 3-33.
Buyya, R., Yeo, S.C., Venugopal, S., Broberg, J., and Brandic, I. (2009) ‘Cloud computing and emerging IT platforms: Vision, hype, and reality for delivering computing as the 5th utility’, Future Generation Computer Systems, 25(6), pp. 599-616. DOI: 10.1016/j.future.2008.12.001.
Cetindamar, D., Phaal, R., and Probert, D. (2009) ‘Understanding technology management as a dynamic capability: A framework for technology management activities’, Technovation, 29(4) pp.237-246. DOI: 10.1016/j.technovation.2008.10.004.
Drengson, A.R. (1995) The Practice of Technology: Exploring Technology, Ecophilosophy, and Spiritual Disciplines for Vital Links. New York: State University of New York Press.
Mason, H., Mattin, D., Dumitrescu, D., and Luthy, M. (2015) Trend-Drive Innovation: Beat Accelerating Customer Expectations. New Jersey: John Wiley & Sons, Inc.
Table of Contents
Technology as a New Trend in Management
(Economic Voice, 2015)
1. Exploring ‘Technology’
1.1 Definition and History
Research shows that the origin of the word ‘technology’ is Greek, deriving from the term ‘technologia, whose roots are techne- meaning art or skill, and logos- meaning word or study’. Both the root of the word and the end carry differing meanings, but Drengson (1995) combines the two and establishes a definition of technology as:
‘the systematic organisation of techniques and skills, so as to produce some product, by means of reorganising a raw material or some other appropriate medium’.
There are many different forms through which technology can be recognised. This stemmed from original machine technologies in the 80’s, to information technology that was utilised in supporting production between the 80’s and 90’s and finally from the 90’s to the present day, information technology has considerably progressed, both in use and availability (Stanford-Smith and Kidd, 2000). Stanford-Smith and Kidd go on to suggest that developing both machine and information technologies will aid in ascertaining future ‘human technology’.
1.2 Recent Movements
Through research I identified a video interview with Chris Murphy, the president and chief strategy officer at ‘ThoughtWorks’ who suggests that ‘over the past 20 years the world has fundamentally changed’ suggesting that ‘one of the key shifts we are seeing is how technology is being viewed’ (Hot Topics, 2015).
Murphy also identifies how he feels that businesses have ‘tunnel vision to the sheer potential technology created for enterprise’. In my opinion the products they can design and sell with technology making them easier to use, but less emphasis on ‘utilising it to interact with their customers’, a concept, Murphy explains ‘about 5 years ago, businesses started to realise what was on the horizon’ with technology now becoming an ‘integrated’ business asset (Hot Topics, 2015).
(Hot Topic, 2015)
Technology and consumer interaction go hand-in-hand; an example is the Smartphone. The first full touchscreen Smartphone was launched just 9 years ago, and Smartphone penetration is now approaching its peak. 81% of UK adults and 91% of 18-44 years olds have adopted a Smartphone device (Deloitte, 2016).
Technology is a phenomenon that has taken off in recent years and if appropriately adopted and utilised one that will be of sufficient benefit to business. This Wiki will further explore how this concept is new, considered a trend and why it should be augmented into management practice.
2. Technology As A ‘New’ Concept
2.1 Definition and Introduction to New
The term ‘new’ refers to something that is of ‘recent origin, production or purchase’ something that is ‘of a kind now existing or appearing for the first time’ (Dictionary.com, 2017). When analysing technology in relation to this definition, it would be wrong to assume that technology as a concept is of recent origin or production as the history of technology goes back to the beginning of human existence. Yet, in reference to technology and its use in business, we could argue the concept as new.
2.1.1 Technology Use
There are numerous different technologies in which businesses utilise to include, computers, software, networking, telephones, accounting systems, inventory control and customer relationship management (MacKechnie, 2017 cited in Small Business, 2017).
This section of the wiki will identify three key concepts that have aided in revolutionising business operations in the 21st Century.
2.2 Inventory Control Systems
‘An inventory control system is a system that encompasses all aspects of managing a company’s inventories; purchasing, shipping, receiving, tracking, warehousing and storage, turnover and reordering’ further to this, ‘new technologies have greatly improved the tools used to manage inventories’ (Inc, 2017).
A report by Oracle (2016) identifies many challenges have arisen surrounding inventory control, but suggests that ‘businesses must look to embrace digital technology’ as a new tool in overcoming them.
Companies began integrating modern inventory management systems into their businesses during the 1990’s, as a result of advances in computer and software technology. But, the ever growing and advancing technological changes enabled the creation of the new RFID (radio frequency identification) microchip technology, which transmits and carries product information among other new characteristics (Crosby, 2007 cited in How Stuff Works, 2017).
This new advancement allows for the effective tracking of sales and inventory, informing the retailer of what consumers are purchasing, enabling them to identify the products that aren’t selling as well, and take appropriate action. The above enables managers a real-time focus of what is happening with their inventories. Oracle (2016) supports this statement suggesting ‘it is vital that businesses have access to contextualised, real-time information to enable them to track, trace and route goods in the most effective way at any given time’.
VMI (vendor-managed inventory) is another automated control, a new venture that allows the vendor additional control over their stock, requiring close working relations with retailers. Defined as when ‘the vendor is responsible for keeping its products stocked on a store’s shelf’ (Crosby, 2007 cited in How Stuff Works, 2017).
Marder’s (2015) blog of inventory management statistics, identifies ‘a shocking amount of capital is tied up in inventory’ and that ‘the number of companies without a robust inventory management system is shocking, 46% of SMBs either don’t track inventory or use a manual method’.
New RFID and VMI systems aid in avoiding loss of profitability, as if implemented and utilised correctly provide managers with a clear picture of their stock, what is selling and what isn’t and enables appropriate action. New and innovative systems facilitating competitiveness and profitability.
2.3 New Cloud Computing
‘Cloud computing enables on-demand access to computing and data storage resources that can be configured to meet unique constraints of the clients with minimal management overheads’ (Aguair et al, 2014) and is defined as a concept of ‘gradual evolution that started in the 1950’s with mainframe computing’ (Neto, 2014 cited in IBM, 2014). At the very beginning of its existence, cloud computing facilitated ‘multiple users were capable of accessing a central computer through dumb terminals, whose only function was to provide access to the mainframe’ (Neto, 2014 cited in IBM, 2014).
Tech Leaders from Insight Enterprises first annual index highlight that ‘the most pressing areas in need of improvement include network infrastructure/moving into the cloud’ with the highest percentage at 61% and 89% ‘cite cloud computing as the innovation that has had a significant impact on technology today (Insight Enterprises, 2016 cited in GlobeNewswire, 2016).
New developments in technology have facilitated the growth of 3 alternate cloud computing platforms to include private, public and hybrid clouds. Allowing ‘anytime, anywhere access to IT resources delivered dynamically as a service’ (Neto, 2014 cited in IBM, 2014).
Buyya (et al, 2009) supports this highlighting cloud computing as ‘the latest paradigm to emerge’ and one that ‘promises reliable services delivered through next-generation data centres that are built on virtualised computer and storage technologies’.
Cloud migration is a new concept that more and more businesses are accepting and exercising. A report identifies that small companies were quick to shift over to using the cloud but larger companies not so much. But with new advances the cloud is proven much more efficient than traditional infrastructure. In light of this, predictions show that the 77% of companies that remained traditional as of 2015 will drop to around 48% by 2018 (Dholakiya, 2017 cited in Cloud Tech News, 2017).
Dholakiya (2017 cited in Cloud Tech News, 2017) anticipates that ‘Cloud security will take precedence’. And arguably so! With the consistent increases in the number of organisations adopting the cloud, it is essential to keep the data stored in a safe and protected environment, if the new concept is to continue its success. Scott Chasin, IT expert, outlines that cloud computing can offer the latest and most robust security. Additionally, that there is a growing new demand ‘for security to be treated as a fundamentally basic utility where safety can be assumed’ (Dholakiya, 2017 cited in Cloud Tech News, 2017).
2.4 Connecting with Customers and Social Marketing
Predictions were made that during 2016 the number one new trend among businesses comprises ‘top performing companies will focus on connecting with customers’ (Altman, 2015 cited in Forbes, 2015). A robust focus on meeting consumer desires is a resilient and ever-growing concept; technology is an identified means for businesses to fulfil this.
Gartner, Inc. are ‘the world’s leading information technology research and advisory company’ (businesswire, 2016). A report from a Gartner representatives states that 'sustained success in social marketing now requires paid advertising’ (Nayak, 2016 cited in Reuters, 2016).
Gartner’s 2016 digital market channel survey predicted that by 2017 80% of businesses surveyed will have social media advertising programmes in place. 38% of that figure has already got current programs in place the remaining 42% will be starting paid social marketing for the first time (Nayak, 2016 cited in Reuters, 2016). Holmes (2017 cited in Hootsuite blogs, 2017) supports the potential success of the new and existing ventures stating that ‘paid social media actually presents some clear advantages for businesses’. Going on to suggest that, it provides the means for companies to ‘zero-in’ targeting specific demographics and optimise advertising ‘depending on campaign’s goals’ (Holmes, 2017 cited in Hootsuite blogs, 2017).
As depicted below, Kemp (2016, cited in We Are Social, 2016) highlights 59% of the population in the UK are active social media users amounting to 38 million people. Facebook is identified as the top active social platform, with 47% followed by Facebook Messenger (the ‘chat’) at 33%. Globally, Facebook has 1.5 billion active accounts; continuing to be the most dominate social platform.
(Kemp, 2016, cited in We Are Social, 2016)
Social marketing provides a new means for consumer interaction. Social forum use is ever increasing; a justified and valuable means for target marketing.
3. Technology As A Current ‘Trend
3.1 Trend VS. Fad
When identifying something as a ‘trend’ it is important to first distinguish it’s meaning from that of a ‘fad’; two concepts that are often misinterpreted thus wrongly associated.
In brief, Mason (et al, 2015) highlights ‘In short: what we do is a trend, and how we do it can be a fad’.
‘A fad is any form of behaviour that is intensely followed by a population for a short period of time. The behaviour will rise relatively quickly and fall relatively quickly once the perception of novelty is gone’. Contradictorily, ‘trends have identifiable and explainable rises that are driven by audience needs. They help solve a problem for people’ (Dilenschneider, 2016). Similarly, Godin (2015 cited in Dilenschneider, 2016) argues a ‘trend gains power over time, because it’s not merely part of a moment, it’s a tool, a connector that will become more valuable as other people commit to engaging it.’
Thus from my perspective portraying a trend as having a sustained value and importance, and’s existence is of reason, and a fad is the product, as such, of the initial trend. The novelty surrounding a trend is continuous and ever growing.
3.2 Trending Increase in IT Budgets
Rigby and Bilodeau (2015) are the authors of the annual Management Tools and Trends reports by Bain & Company. The 2015 edition, acknowledges business managers are currently contending with a market that is dominated by technological change, suggesting they (being the business managers) ‘plan to spend more on innovation, IT and long-term growth capabilities, and they are embracing digital transformation tools’.
The success and use of information technology (IT) in business is substantial, thus most businesses are increasing their IT budgets. The first annual ‘Insight Enterprises: Intelligent Technology Index’ identifies 6% are planning on investing less than the previous year (2015), additionally, that ‘medium-sized companies will lead the way in tech spending growth: 60 per cent of medium sized businesses plan to increase their budget by an average of 17 per cent over 2016’(Insight Enterprises, 2016 cited in GlobeNewswire, 2016).
(Insight Enterprises, 2016 cited in GlobeNewswire, 2016)
The ‘largest portion of the 2016 IT budget will go toward maintenance of existing equipment and infrastructure (37%), followed by the adoption of new technologies and innovation (33%) (Insight Enterprises, 2016 cited in GlobeNewswire, 2016).
3.3 The Internet and Portable Access
The Internet age began on ‘August 27 1976, scientists from SRI International celebrated the successful competition of tests by sending an electronic message from a computer set up at a picnic table behind the Alpine Inn’ (The Guardian, 2016) the place that the original ‘ARPANET’ was created, pre-internet.
Statistics show that the total population of the UK, as of January 2016, was 64.91billion of which 92% (59.47billion) are active Internet users; up 2% from 2015 (Kemp, 2016 cited in We are Social, 2016).
‘Media time’ is becoming a key part of an individual’s day. On average 3 hours: 47 minutes are spent on the internet daily through a computer or tablet, 1 hour: 33 minutes on a mobile phone and an average of 1 hour: 29 minutes using any device to access social media (Kemp, 2016 cited in We are Social, 2016).
The Office for National Statistics reported in 2016 that in Great Britain, the Internet was used daily or almost daily by 82% of adults, increased from 78% just a year prior in 2015. Also, 89% of Great British households in 2016 had Internet access up 3% from 2015 and a significant 42% increase from 2006 (ONS, 2016).
A consumer trend to consider is the use of technological devices to access the Internet whilst away from a fixed desktop. As depicted in the graph, during 2016, 70% of adults accessed the Internet ‘on the go’ facilitated using a mobile and/or smartphone device, which was double the 36% that was estimated for 2011 (ONS, 2016).
(ONS, 2016)
As shown below, statistics from the global web index indicates the most popular devices for Internet access; 80% voted the smartphone the most popular tool (Chaffey, 2016 cited in Smart Insights, 2016).
(Chaffey, 2016 cited in Smart Insights, 2016)
Simon Kemp is the author of the annual reports highlighting ‘digital social and mobile usage around the world’. The UK section of ‘Digital in 2016’ outlines the following statistics in support of the previous statement:
- 27% of those surveyed had purchased online via a mobile device and 73% via a laptop or computer in the last 30 days
- 92% of the population own a mobile phone, 71% have a smartphone and 75% a laptop or desktop computer.
(We Are Social, 2016).3.3.1 Business Websites
In consideration of this, would accessibility from such portable devices not be at the forefront of business strategies? An article written by Gazdecki (2014) highlights that SMB’s are not yet fully mobile compatible. Clutch, a marketing software company carried out a survey, which supports Gazdecki’s argument. In 2016 32% of small business websites were not mobile friendly or they were unsure if they were, but the results in the graph below show anticipated changes suggesting 36% will increase website features, 32% mobile friendliness and 39% content development, thus following the trend (Soderlund, 2016 cited in Clutch, 2016).
(Soderlund, 2016 cited in Clutch, 2016)
Websites are an essential tool in the attracting, targeting and retaining of customers. Statistics, correct as of January 2015, show that ’98 per cent of companies now have a website and eight out of ten manage finances online’ (Terrelonge, 2015 cited in Real Business, 2015).
Websites allow for greater access to consumers and to interact with them. ’28 per cent of Brits think local companies that don’t have websites are “out-dated and can’t keep up with the times”’ (Terrelonge, 2015 cited in Real Business, 2015). Portraying strong consumer demand for marketing and communicating with them through utillsing technology and websites. The Internet and alternate information technologies are essential in the 21st century for consumer engagement and in-order to identify a competitive stance in the market.
4. Technology And ‘Management’
4.1 Management and Business
Management is essential in the effective running of any successful organisation; technology based assets are fundamental in today’s society. Consumers and businesses alike are increasing both their use of and reliance on technology.
In support of this Watkins (1998) recognises ‘the role of technology in world businesses both large and small, has increased remarkably. Where the assets of businesses were once represented primarily by bricks and mortar, manufacturing facilities, rolling stock and physical inventories, many of the larger and more profitable commercial organisations today claim technology as their primary asset’.
Throughout this wiki numerous concepts have been identified, in which technological advances and developments have allowed for them to be of substantial aid to businesses. Areas include customer interaction, automation of services, the tracking of products stocked and sold, and the use of virtual computing systems, enabling the ease of data storage and sharing.
But, without effective management these features would not be of any benefit to the company, its employees nor it’s customers.
4.2 Management Definition and Application
Management is defined as ‘a set of activities (including planning and decision making, organising, leading and controlling) directed at an organisation’s resources (human, financial, physical and information) with the aim of achieving organisational goals in an efficient and effective manner’ (Griffin, 2015).
Technology management (TM) however ‘can be conceived as the development and exploitation of technological capabilities that are changing continuously (Best, 2001; NEC, 1987 cited in Cetindamar, 2009).
In relation to technological exploitation and capabilities, it is a concept that has significantly changed business operations. MacKechnie (2017) supports my judgements, identifying ‘few successful companies do not use technology to improve productivity, communicate more efficiently and track customers and goods. In fact most successful organisations rely on technology for almost every aspect of their business.’
Identifying not only the relevance to society today, with the identified number of consumer’s utilising technology, thus a justified market for businesses to target. But also, the increasing use of technology in business is making the market extremely competitive thus increasingly harder for a company to be a success within, without also embracing the technological evolution. Depicting in turn, the overwhelming need for technology in today’s society.
Mason (et al, 2015) suggests ‘customers’ expectations are frequently raised without them even having personally experienced “the best,” but merely through knowing what standard the “best” represents’. Customers are fully aware that the use of technology, the internet and automated services utilised effectively in a business context makes it easier for their wants, needs and demands to be met.
In turn consistently increasing customer expectations surrounding the provision of an appropriate product or service. In-order to effectively meet consumers’ demands it is of overriding importance to effectively manage technology.
5. Is Technology A New, Trend In Management?
5.1 New?
As identified at the beginning of the wiki, technology as a concept is not new. The history of technology stems back before the 80’s and the history of the concepts identified e.g. cloud computing and inventory control root from the 60’s. But, the way that business now utilise these information technologies and how they are augmented into business procedures is new. Modern integration began in the 90’s and since then advances in technology have enabled the systems to develop to what they are today.
5.2 Trend?
Referring back to the definition, the becoming of a valuable trend is facilitated through engagement driven by audiences needs. This wiki has identified key concepts that are driven by consumer demand. This includes the increase of IT budgets in-order to enable the development of business websites and mobile accessibility, in-line with the increased consumer trend of accessing the Internet on-the-go from portable devices. Technology is becoming augmented into the lifestyles of consumers and businesses alike, thus a justified trend.
5.3 Management?
The management of technology is of excelling importance, as identified throughout this wiki, technology is overtaking standard business procedures and is of overwhelming importance to consumers and businesses alike in today’s society. The exploitation of ever-growing technological proficiencies is the overriding focus in achieving and surpassing business objectives. Consequently embracing the technological evolution involves effectively managing the subsequent components in-order to ensure their successful implementation and use.
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